Mozaic Finance glossary Non-registered accounts

Non-registered account: taxable investing, explained

A non-registered account is the flexible, no-limits option: contribute and withdraw as much as you like, but pay tax each year on the income and gains it generates.

A non-registered account, sometimes called a taxable account or a cash account, is an investment account that does not have the tax shelter of a registered plan. There are no contribution limits and no withdrawal restrictions, but the trade-off is that you pay tax on what it earns.

How a non-registered account works

  • There is no contribution room and no annual limit: you can invest as much as you want.
  • There are no withdrawal restrictions: the money is always accessible.
  • Capital gains are taxable when you sell, with 50% of the gain included in your income (the standard inclusion rate).
  • Eligible Canadian dividends qualify for the dividend tax credit; interest is fully taxed as income.
  • A cash account is the standard, non-borrowing form of a non-registered account, as opposed to a margin account.

How Mozaic tracks your non-registered account

In Mozaic, cash and non-registered investment accounts are first-class account types. Connect them through SnapTrade or Plaid, or add them by hand, and their balances and holdings roll into your net worth in your base currency.

Mozaic tracks balances, holdings, and cost basis so you can see gains and losses. It does not calculate your taxes; the numbers help you and your accountant, but they are not tax advice.

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Frequently asked

No. Unlike a TFSA or RRSP, a non-registered account has no contribution room and no annual limit, and no restrictions on withdrawals. The trade-off is that you pay tax on the income and gains it earns.
Capital gains are taxed when you sell, with 50% of the gain included in your income. Eligible Canadian dividends get the dividend tax credit, and interest is fully taxed as ordinary income.
A cash account is a type of non-registered account, the standard version where you invest only your own money. A margin account is the other main type, where you can borrow against your securities.